Sharp rise in inflation

The latest price inflation figures from the Office for National Statistics (ONS) show a sharp rise in the year to June.

The Consumer Prices Index (CPI) measure of price inflation went up from 1.5% in May to 1.9% in June.

This measure of inflation was pushed higher by a rise in the price of women’s clothing.

It remains below the Bank of England’s 2% target for CPI inflation, where it has now been for seven consecutive months.

Price inflation as measured by the Retail Prices Index (RPI) rose to 2.6%, up from 2.4% in May.

This measure of price inflation includes housing costs and mortgage payments, which makes it a more relevant measure of price inflation for many working age people.

Food and non-alcoholic beverages rose in price, contributing to this RPI increase.

The ONS also revealed today that house price inflation was 10.5% for the year to May.

It will be interesting to see whether these latest price inflation figures represent a temporary blip or the start of a sustained rise to higher levels.

Should it be the latter, pressure will start piling on the Bank of England to hike interest rates sooner rather than later, in an attempt to stave off dangerously high price rises.

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